- 11 - to restructure the provision of health care in the United States in 1994 by the Federal Government, including the creation of some form of national health insurance. Against this backdrop, petitioners concluded that practicing medicine as independent or small group practitioners using an IPA would no longer be economically viable for them. Instead, they decided, it would be advisable to affiliate with a larger health care organization such as an HMO or a hospital. Affiliation with a larger organization provided a more secure means to practice medicine in a managed care environment, in petitioners' view, as it would provide them with a larger patient base for spreading the risk of loss being transferred to them by health insurers, greater capital resources for the same purpose, the benefits of greater bargaining leverage in negotiating managed care contracts, and greater efficiencies and economies of scale in providing care. To facilitate the affiliation, it was also decided that certain of the UHMG member physicians, including petitioners, should form a medical group.9 Unlike an IPA, a medical group involved the consolidation of the member physicians' medical practices, so that patient revenues were pooled, expenses were shared, and salaries were paid to member physicians. The newly 9 Not all members of the UHMG IPA were asked to join the new medical group, for various reasons, including that his or her medical specialty, or personality and/or practice style, was not perceived to be a good fit.Page: Previous 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 NextLast modified: March 27, 2008